Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 47.14

-6.1%

Feb 10 3:59 PM EST

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To: Barry Grossman who wrote (9244)	1/24/1997 3:18:00 PM
From: Kevin	of 186894

Hi Barry, I never said the market maker had control over the close of the stock at expiration, but the overall market seems to, because of the activity that goes on. Let me explain. On Jan 17, options expiration, Intel's strike 145 had more volume for it's put and calls than the 140s and 150s combined. So everytime somebody is buying and selling the 7,927 puts Friday the options market maker is doing his job...buying and shorting INTC stock as need be to cancel any negative delta. Same thing for buying and selling of the 7,967 calls on Friday. It's a push and pull going on with bears saying it'll go below $145 by buying puts or selling calls (either way I believe the option market maker will short INTC). All 3 forces are downside pressure. And the exact opposite is happening with the bears buying calls and shorting puts. This along with the market-makers corresponding activity draw the stock higher. ALL THE ACTIVITY IS BASED AROUND THIS PRICE. Make sense? If not, send this to your friend for his comment, and post your personal interpretation here. Thanks. Kevin

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